Welcome to the Course Page of
AS/SC/AK/MATH  2580 6.0 A
Mathematics of Investment
and Actuarial Science

2005-2006 Full Year

 

Department of Mathematics and Statistics
York University
4700 Keele Street
Toronto, Ontario  M3J 1P3

Course Organization:

Announcements
Course Information
Course Schedule
Homework
Exams  Information
Links & Other Resources

Announcements

This area will contain announcements and solutions to tests. Announcements made in class will be posted here in reverse chronological order and will not be repeated in class. Please take a minute to read the announcements carefully, as they often get updated. You may need to Reload/Refresh this page.
 
  Please click  here  to see  your final exam mark and unofficial letter grade
  for the course. Also, please note that your official grade will be sent to you
  by the Registrar's Office upon the approval by the Senate.
  Deferred Final Examination will take place on Thursday, May 18th
  from 14:00 to 17:00 in CLH D.
          HAVE A NICE SUMMER!
April 04: Please note that this week additional office hours will be held on Thursday,
  April 06 from 2:00 to 3:30 PM.
April 03: Please note that the Final Examination will take place on Tuesday, April 11
  from 19:00 to 22:00 in CSE B. To the exam in addition to your calculator
  and writing supplies you can bring an information sheet, which is a single sheet
  of paper, 21.6 cm by 28 cm, with writings on both sides, but without flaps
  or layers. The information sheet can not be shared. Please also note that there
  will be no questions from Chapter 1 of the text-book on the final exam.
April 02: I am making available the  term grades  for the course. Please let me know
  by the end of this week if there is any discrepancy.
March 28: There are two new Excel workbooks in the course folder on ACADLABS:
  CIA8692MortalityTables.xls, which is taken directly from pages 329 - 331 of the
  text-book and Chapter9Problems.XLW, which illustrates how to use this mortality
  table with Excel to do exercises from Chapter 9.
  Please also note that I will bring the course evaluation forms to the class on
  Wednesday, March 29. It is the time for you to be the judge. Please come and
  fill out the evaluation forms.
March 23: Please note that Test #5 papers will be returned in the class on Friday,
  March 24.
March 11: We will write Test #5 during the lecture period on Friday, March 17.
  On the test you will be responsible for all the material covered in class from
  Sections 6.4-6.7, 7.1-7.4 and 8.2-8.3 of the text-book. Please note that
  from Section 6.7 you are responsible only for the Method of Averages, and
  from Section 7.4 you are responsible for the Straight-Line Method and the
  Constant-Percentage Method only. The test will also cover all of the financial
  functions built-in to Excel that are on the Financial Functions Crib Sheet as well
  as certain basic Excel concepts, such as the use of absolute and relative cell
  references in Excel formulas.
February 9: Please note that Test #4 papers will be returned in the class on Friday,
  February 10.
January 27: We will write Test #4 during the lecture period on Friday, February 3rd.
  On the test you will be responsible for all the material covered in class from
  Sections 5.1-5.3, 5.5-5.7 and 6.1-6.3 of the textbook. Please note that
  there will be questions that ask you to write down an Excel formula that
  will produce the answer to a given problem. At this point you are responsible
  for knowing only how to use the basic Excel financial functions given in the file
  FinFcnsCribsheet.doc except IRR and NPV. The use of a portable computer
  during the test is not allowed.
January 4, 2006: Please note that Test #3 papers were returned in the class on Monday,
  December 05 (as well as today).
November 25: We will write Test #3 during the lecture period on Friday, December 2nd.
  On the test you will be responsible for all the material covered in class from
  Sections A3.1, 3.5, 3.6, 4.1- 4.4 (inclusive) of the text-book.
November 13: Please note that Test #2 papers will be returned in the the class on Monday,
  November 14. Please click to see  solutions  to the test questions in PDF format.
November 3: Today at 12:01 AM the bargaining teams of CUPE 3903 and York University
  has signed a tentative agreement and a strike has been averted.
  More information about that can be found at: www.cupe3903.tao.ca
October 31: We will write Test #2 during the lecture period on Friday, November 4th.
  On the test you will be responsible for all the material covered in class from
  Sections 2.6-2.10 and 3.1-3.4 (inclusive) of the text-book.
October 13: Please note that Test #1 papers will be returned in the the class on Friday,
  October 14. Please click  to see  solutions  to the test questions in PDF format.
September 27: We will write Test #1 during the lecture period on Monday, October 3rd.
  On the test you will be responsible for all the material covered in class from
  Sections 1.1-1.5 and 2.1-2.6 (inclusive) of the text-book.
 September 06: Welcome back!
  To view and/or print  PDF  files you need to download the Acrobat Reader 

Course Information

Course: Session: 2005/06 Full Year
  Section: A
  Lectures: MWF 11:30 - 12:20pm, CLH K
Instructor: Name: Dr. Iulduz Raguimov
  Office: S512 Ross
  E-mail: raguimov@mathstat.yorku.ca
  Phone: 416-736-2100, Ext. 66092
  Office Hours: MWF 1:00 - 2:00pm
Grading: Five Class Tests  12% each
  Final Examination 40%

Course Description: Theory of interest; annuities certain; amortization and sinking funds; evaluation of bonds and other investments; depreciation, depletion and capital cost; insurance, including mortality tables, principles of life annuities, premiums and reserves. The first four-fifths of the course deal with most of the above topics, with applications to simple and general annuities, perpetuities, loan payments, capital budgeting, and internal rates of return. In the last few weeks of the course, the theory of interest is applied to life annuities and life insurance. Students will use EXCEL, a spreadsheet available in the computer laboratory in the Steacie building. This spreadsheet operates on both the Macintosh and IBM-compatible platforms. EXCEL will be used to simplify and illuminate equation-solving, amortization of loans and mortgages, bond schedules, depreciation tables, and mortality tables. No previous computer experience is assumed. With the help of notes and class instruction students will be introduced to the spreadsheet and to its use in mathematics of finance. The emphasis will be on practical problems. For a more detailed list of topics with references to the text-book, please see Course Schedule.

Text-book:

Mathematics of Finance, Fifth Edition

by P. Zima and R. L. Brown 
  McGraw-Hill Ryerson, 2001. ISBN 0-07-087135-3
Optional Aids: Solutions Manual for use with Mathematics of Finance, Fifth Edition
  by P. Zima and R. L. Brown
  McGraw-Hill Ryerson, 2001. ISBN 0-07-087136-1
  Each student will also need a hand-held calculator which has power
  and logarithm functions. Specifically, it must be able, given values of
x and y, to compute xy .
 
Course Prerequisites: One full university Mathematics course. Students who do not have the
  prerequisite must see me within the first two weeks of classes.
   
Degree-credit AS/MATH 1581 3.0, or AS/MATH 2581 3.0, or AS/SC/MATH 2280 3.0.
Exclusions: For students in the Actuarial Mathematics stream, AS/SC/MATH 2280 3.0
  is required instead of AS/AK/MATH 2580 6.0.
 
Important Dates: September 07: Classes commence.
September 22: The last date to enrol in the course without my permission.
October 21: The last date to enrol in the course with my permission.
  December 05: Fall classes end.
  January 04: Classes resume.
February 03: The last date to drop the course without receiving a final grade.
  February 13-17: Reading Week.
  April 03: Classes end.
April 06-28: Examination period.

Course Schedule

(subject to any changes announced in class)

WEEK

SECTIONS

COMMENTS

September 7-9 Introduction, 1.1, 1.2 Classes begin Wednesday, September 07. 
September 12-16 1.3, 1.4, 1.5  
September 19-23 2.1, 2.2, 2.3  
September 26-30  2.4, 2.5, 2.6  
October 3-7  2.6, 2.7, Test #1 Test #1 will take place on Monday, October 3.
October 10-14  2.8, 2.9, 2.10  
October 17-21  2.10, 3.1, 3.2,  
October 24-28  3.3, 3.4  
Oct 31 - Nov 4 3.5, App. A3.1, Test #2 Test #2 will take place on Friday, November 4.
November 7-11  3.6, 4.1  
November 14-18  4.2, 4.3  
November 21-25  4.4, 5.1  
Nov 28 - Dec 2  5.1, 5.2, Test #3 Test #3 will take place on Friday, December 2.
December 5 5.3 Fall classes end Monday, December 5.
January 4-6 5.5, 5.6 Classes resume on Wednesday, January 4. 
January 9-13 5.7, 6.1, 6.2  
January 16-20 6.2, 6.3, 6.4  
January 23-27 6.5, 6.6  
Jan 30 - Feb 3 6.7, Test #4 Test #4 will take place on Friday, February 3. 
February 6-10 7.1, 7.2  
February 13-17 No classes Reading week
February 20-24 7.3, 7.4  
Feb 27 - Mar 3 7.4, 8.1, 8.2  
March 6-10 8.3, 8.4, 9.2  
March 13-17 9.3, 9.4, Test #5 Test #5 will take place on Friday, March 17.
March 20-24 9.4, 9.5  
March 27-31 9.6, 9.7  
April 3 Review. The classes end Monday, April 3.
April 6-28 Final Examination: Tuesday, April 11, 19:00-22:00, CSE B.

Note: The course will cover nearly all the sections of each chapter as well as some additional material on spreadsheets. A component of the course will be devoted to an introduction to the use of spreadsheets for financial calculations. We will be using MS EXCEL which functions on both PC and Macintosh platforms. Some class sessions in the second term will be devoted to demonstrations of this software but students will be expected to work on their own in the computer laboratories scattered throughout the campus; some of these are open 24 hours per day, 7 days a week. The software manuals for EXCEL are on 2-hour reserve at the desk in Steacie library; but you should rarely need these because the program itself has substantial on-line help files. To access these programs and course-related data files, you will require a personal "ACADLABS" account; this is the name of the server on which EXCEL resides. To obtain such an account, follow the instructions available at the Computing Commons or at this website, ACADLABS accounts. Note that this account is different from your e-mail account.  For information about our course-specific files, please read the following information:  ACADLABS access to course-specific EXCEL files.


Homework  

Throughout the year, the everyday homework assignment is to do as many of the problems from the textbook as you find necessary to develop your understanding of the course material. These will not be collected for grading and hence will not directly affect your grade. While these will not directly affect your grade, it is extremely important that you complete as many problems as possible. There is nothing like a bit of computation to strengthen understanding in mathematics! Successful students must keep up with homework and seek help for points they do not understand as soon as possible. Do not fall behind! It is recommended to read the relevant sections of the text-book before every class. Next to the classes, working out the answers to the problems the most important preparation for the tests and exam that will contain for the most part but not exclusively, questions very similar to those from the text-book. I will occasionally make specific suggestions concerning problems to do or to avoid.. It is quite practical to work on your own or together in small groups. Each student should do at least two hours of independent study for every lecture hour. The amount you learn in this course and the grade you receive will be proportional to the amount of time you spend working on problems.


Exams Information

Lecture/Exam Rules:

Please turn off all cell phones and pagers before entering the lecture hall. For tests and exam cell phones, digital dictionaries, palms, pagers or other electronic devices are not allowed. All such devices as well as all books, papers, knapsacks, and briefcases must be left at the front of the lecture hall. Anyone caught with electronic devices will be charged with Academic Dishonesty (see the next page). The only items you may have at your seat are pens, pencils, student ID, a non-graphing, non-programmable calculator and purses.
You are responsible for all material covered in lectures.
Note: Photo identification and signing-in are required at all
tests and exam.

Final Grade:

The composition of the final grade is as follows:
Five Class Tests (50 minutes each written tests held in lecture periods):  12% each (Tentative dates for the tests: Monday, October 03;  Friday, November 04;  Friday, December 02 of 2005, and Friday, February 03; Friday, March 17 of 2006).
Final Examination
(3-hour exam scheduled by the Registar's Office):  40% of the overall grade, will take place during the examination period.
All test marks you receive should be interpreted as raw scores and not "percentages". The statistics of scores will be announced for all tests. Students have seven days from the date of the return of a test paper to appeal their marks. Cut-off for converting midterm scores into letter grades will be announced prior to the drop date.

Make-up Policy:

No permission will be given to a student to write tests in advance of their scheduled dates. No make-ups will be done for the in-class tests.  Missed tests will be counted as zero, except under extreme circumstances. If you miss a class test  and provide a medical certificate showing a physical incapability of writing it, the corresponding percentage of the final grade will be "forwarded" to the final exam. However, missing tests is extremely dangerous and not recommended. As experience has shown, students who miss class tests because of some 'mysterious illnesses' will usually average 30% on the final exam. A student who misses the Final Examination will be allowed to write a make up exam only if both of the following conditions are met:
   
1) the student notifies me (raguimov@mathstat.yorku.ca) or the Department of   Mathematics and Statistics (Undergraduate Office, N502/503 Ross Building, 416-736-2100, Ext. 55902 or 33969) in advance that the exam will be missed,
   
2) the student provides a medical certificate showing a physical incapability of writing the exam within one week following the exam.
Students who miss the Final Examination and do not meet both conditions will receive a grade of F.
It is student's responsibility to fill out and submit the Deferred Standing Agreement Form.
Note: Do not make vacation/job plan until the final exam date is known: having a plane ticket for Hawaii or Las Vegas on
April 15 is NOT a legitimate excuse for absence from a final exam on April 20.


Religious Observance:

 York University is committed to respecting the religious beliefs and practices of all members of the community and making accommodations for observances of special significance to adherents. If any of the dates specified in the course schedule for in-class tests pose such a conflict, students should contact me (raguimov@mathstat.yorku.ca) within the first two weeks of classes. Please note that if the final exam date poses a conflict, students must complete the Final Exam Accommodation Form, which can be obtained from the Registrarís Office

Academic Honesty:

Conduct that violates the ethical or legal standards of the university community or of oneís programme or specialization may result in serious consequences. Refer to the Senate Policy on  Academic Honesty.

Communication:

Individual questions can be discussed by e-mail, or in person after class, or during office hours. Please send all e-mail notes as plain text within the body of the message. Do not send attachments nor HTML-formatted mail. Also, if the name of your account is an alias, I will not know who the mail is from unless you sign it; it also risks being accidentally discarded as junk mail. The course web page will be up-dated regularly to include important announcements made in class, such as the material to be covered on the tests. E-mail notes requesting such information contained on the web page will be answered the last.


Links and Other Resources

1-  York Undergraduate Math Program
2-  Study Groups


Questions and comments regarding this Web page please send to raguimov@mathstat.yorku.ca

© 2005, All Rights Reserved, York University & Iouldouz S. Raguimov

Last modified May 06, 2006